Regional foreign direct investment and wage spillovers:plant level evidence from the UK electronics industry


This paper examines the extent to which foreign investment in the UK generates wage spillovers in the domestic sector of the economy using a simultaneous dynamic panel data model and focusing on the electronics sector, possibly the most ‘globalized’ sector of UK manufacturing. It finds evidence that the higher wages paid by foreign firms cause wages in the domestic sector to be bid up. This phenomenon is, however, largely confined to the region where foreign direct investment takes place.

Publication DOI:
Divisions: College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship
College of Business and Social Sciences > Aston Business School > Aston India Foundation for Applied Research
Additional Information: The definitive version is available at © 2003 Blackwell Publishing Ltd and the Department of Economics, University of Oxford
Uncontrolled Keywords: foreign investment,UK,wage spillovers,domestic sector,electronics sector
Publication ISSN: 1468-0084
Last Modified: 27 Jun 2024 07:38
Date Deposited: 13 Oct 2009 15:30
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Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL) ... 706094/abstract (Publisher URL)
PURE Output Type: Article
Published Date: 2003-09
Authors: Driffield, Nigel (ORCID Profile 0000-0003-1056-3117)
Girma, Sourafel



Version: Accepted Version

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